The FTSE 100 edged lower on Monday but continued to outperform its main European counterparts amid a broader equity selloff. Market sentiment was weighed down by renewed tensions in the Middle East after fresh strikes were exchanged between Iran and Israel, casting doubt on the durability of the ceasefire and undermining hopes for a lasting peace deal.
The escalation in the region sent oil prices sharply higher, with Brent crude climbing more than 4% to above $97 per barrel. The move in energy markets lent support to the UK benchmark through heavyweight constituents Shell and BP, while defensive consumer names, including British American Tobacco and Diageo, also provided a buffer.
In corporate news, Tate & Lyle soared after agreeing to a £2.7 billion takeover by US-based Ingredion. The offer, at 615 pence per share in cash, represents a substantial premium to the company’s recent trading levels.
